Bitstamp Review: Is It the Cheapest Exchange for Buying Bitcoin?

Bitstamp is one of the oldest and most respected cryptocurrency exchange platforms. It’s been in operation since 2011.

The exchange is best suited to intermediate and experienced cryptocurrency users who need to trade Bitcoin, altcoins, and fiat currencies. Bitstamp looks to offer users a low-fee way to exchange digital currencies in large amounts. It’s particularly popular with Europeans, as it was developed in Luxembourg and now has offices in London.

In this review, you’ll find an in-depth look at Bitstamp,
including its main features, its supported currencies, and whether it
will ultimately fit your requirements.

Company Overview

Because it’s been in operation since 2011, Bitstamp has
developed a well-respected, reputable, and reliable service. It was one
of the first exchanges originally created to trade Bitcoin as a
competitor to the then-popular Mt. Gox.

Mt. Gox was once the major Bitcoin exchange, handling nearly 70% of
transactions. Based in Tokyo, the platform was brought down by the most
infamous Bitcoin hack, which saw 850,000 coins stolen. Many people lost
large sums of money that were never recovered.

Bitstamp’s European base has made it a powerhouse in the
cryptocurrency industry, and the platform knows what it’s doing when it
comes to the blockchain. It’s navigated the bumpy, twisting roads of
Bitcoin, and it’s better off for it.

Bitstamp’s service is best suited to someone with a bit of
cryptocurrency experience. Despite Bitstamp’s head start on the
competition, the site’s usability is not very straightforward and is a
bit sophisticated for beginners. Services such as Xapo or Coinbase might be easier if you’re looking to buy your first bitcoins.

Currencies supported

Bitstamp works with euros and US dollars for fiat currency
options. If you have a European bank account, you’ll find the service
particularly useful because you can deposit money via bank transfer.
This helps to avoid hefty credit card fees.

The cryptocurrencies on offer are those you’d expect from a
major exchange: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and
Ripple (XRP) all have trading and wallet options.

Countries Supported

Bitstamp provides Europeans with fantastic support,
especially those with euro bank accounts. Wire transfers from euro
accounts are the cheapest way to use the service if you deposit fiat
currency. Bitstamp also now allow deposits via credit card, which opens
up more easy options for the rest of the world—however, it’s an
expensive option.

Bitstamp has offices in Luxembourg, the United Kingdom, and the
United States. It’s quite comforting to know that they have a UK phone
number and address, making them feel a little more trustworthy.

Exchange Fees

Deposits, withdrawals, and trading fees with Bitstamp are generally
pretty cheap compared to most exchanges. The deposit fee is just 0.05%,
which is pretty low. Other exchanges can be particularly greedy in this
area, taking 2%, 3%, or even 4%.

Trading fees vary depending on your buy and sell amounts.
The highest trading fee is 0.25% for amounts under $20,000, and it can
fall to as low as 0.10% if you’re lucky enough to be working with more
than $20,000,000. Once again, these are relatively negligible fees
compared to some competitors.

Be wary of using your credit card. Depositing via card for small
amounts will cost you dearly. Amounts less than $500 carry a whopping 8%
fee.

Deposits and withdrawals in Bitcoin, Litecoin, and Ethereum are free of charge.

Customer Support

Customer support for cryptocurrency and blockchain companies
can be quite unreliable and can vary from company to company or even
customer to customer. You’ll find users talking about both good and bad
experiences with Bitstamp, which is to be expected for a pioneering
business in a developing industry.

You can, of course, contact Bitstamp via email, and you’ll
usually get a reply within 24–72 hours depending on the nature of your
query. The business’s UK phone number is also available to call in an
emergency.

There’s also a decent FAQ page.
Many companies just pay lip service to this area of their websites, but
Bitstamp actually provides in-depth information that should answer most
major questions.